UserAgent: Mozilla/5.0 (Macintosh; Intel Mac OS X 10_11_6) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/53.0.2785.116 Safari/537.36

Steps to reproduce the problem:
1. Enable chrome flag "Creation of app shims for hosted apps on Mac" (#disable-hosted-app-shim-creation) (set it to enabled)
2. Install any hosted app (one that defines app.launch.web_url and app.urls)
3. The app is available in the Apps interface when opening a new tab, but is not accessible via the Launchpad, nor ~/Applications/Chrome Apps, and cannot be dragged into the OS X Dock. No app shim was created.

What is the expected behavior?
Chrome should be creating an app shim (.app package in ~/Applications/Chrome Apps and adding it to the Launchpad).

What went wrong?
Chrome isn't generating an .app package nor adding a shortcut to the Launcher.

It is also completely disrespecting --enable-hosted-app-shim-creation (via chrome flag #disable-hosted-app-shim-creation set to enabled).

WebStore page: https://developer.chrome.com/webstore/get_started_simple

Did this work before? Yes This was working fine until May 23ish of 2016, right around the time the Chrome App Launcher was being deprecated.

Chrome version: 53.0.2785.116  Channel: stable
OS Version: OS X 10.11.6
Flash Version: Shockwave Flash 23.0 r0

Thanks so much for your time and effort in resolving this!